Archer Daniels Midland Company (NYSE:ADM)
The Company is engaged in procuring, transporting, storing, processing, and merchandising agricultural commodities and products.
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Recs
With the corn crop situation this company should out perform the market.
ADM has been a very solid company with an excellent management team.
A leader in the world food supply, this company will create new ways to feed the ever growing world population.
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With rising commodity prices and a possible increase in export demand, this large agricultural conglomerate should see increased revenue in 2008.
However, it's infrastructure development expenditures and the lackluster demand for ethanol products don't make it a rocket. Still I think it will continue to gain steadily in value over the year.
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Low PE with good history of 5yr growth and below its 52WH
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New studies show biofuels are worse for the environment than gasoline. May not have an immediate effect on general attitude, but doesn't bode well
Two articles linked below:
http://dsc.discovery.com/news/2008/02/08/biofuel-global-warming.html
http://blog.wired.com/wiredscience/2008/02/studies-say-bio.html
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Long term growth story, is into bio energy and continues to grow in traditional segments. Underpriced compared to market competitor Bunge.
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Especially if democrats get elected.
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Strong company with in the right lines of business.
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Ethanol legistaion will keep giving it a boost.
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THEY CONTROL 35% of all US CORN > ECON GOING GREEN = AADM getting loads of GREEN
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I believe this stock will lead this category in the next year or so. (ADM)
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Soy...world needs it.
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Exxon-Mobile of corn.
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Oil will surge and oil will fall but agflation is here to stay. I don't even think you have to keep the ethanol interest going to be bullish on ADM.
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On a strictly technical basis, my magic charts say this will outperform the S&P
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Biofuels will continue to grow and ADM is the most established player.
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As the alternative fuel market rises, so will ADM. Long range though, the combustible fuels area will die out in favor of cleaner fuels like solar, wind and tidal.
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What don't these guys do? With five of their zytro-n stable 5 factories pushing out product that has higher demand than white lithium gear lube, ADM is poised to move. Simply overlay their chart with a Hendler tracing and you'll see many iPoints peaking at 80 or more zenuits. This may not be a prediction, because predictions are sometimes wrong. Bank on it. Hot lava.
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This company knows how to play commodities to it's best advantage.
Plus they are the "King" of ethanol .
Ethanol may not make sense to use, but the Congress wants energy independence more.
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Corn.
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Best of BOTH worlds. Food AND Oil
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